US GDP grew 1.1% in Q1

 

U.S. GDP growth decelerated to a 1.1% annual rate in the first quarter of 2023. Economic growth has been slowing for two consecutive quarters after reaching 2.6% in Q4 2022 and 3.2% in Q3 2022. 

  • Strong consumer spending fueled growth in the first three months of the year but a slowdown in the housing market and a drop in business investment created downward pressures.
  • A significant drop in home sales and lower manufacturing output in March have stoked fears of a recession in the second half of 2023.
  • The failure of two mid-sized banks in March has fueled concerns about the health of the financial system.
  • Boston College economics professor Brian Bethune said that smaller companies that can't issue bonds will be particularly hard-hit by the pullback in bank lending and a broader credit crunch.
  • Economists surveyed by the Wall Street Journal project that economic growth will be stagnant in the next three quarters before reaching nearly 1% in the first three months of 2024.
  • The U.S. economy averaged 2.2% annual economic growth in the decade before the COVID-19 pandemic. 

Post a Comment

Previous Next

Contact Form